AMP was founded to help people own their tomorrow, and partnering with the Key to Life Trust to help counter the high rates of suicide in our country is another step in that journey. We’re getting behind AMP and the I AM HOPE TOUR, which will see a team led by Mike King riding from Bluff to Cape Reinga on scooters painted by famous Kiwi artists, delivering their message of hope to schools and communities along the way.

February was Gynaecological Cancer Awareness Month where Teal ribbons were being sold across the country to educate communities and raise awareness about all Gynaecological Cancers and support those affected.

NSP in Parnell hosted an Ovarian Cancer charity lunch in support, where all proceeds on the day went to the Foundation.

It was great to have Kelly from our office in attendance for a charity SW Morris & Associates strongly supports.

(Bloomberg) -- New Zealand’s central bank said risks to the nation’s financial system have receded after house-price inflation slowed and global dairy prices recovered from a slump.

“New Zealand’s financial system remains sound and the risks facing the system have reduced in the past six months,” Reserve Bank Governor Graeme Wheeler said in the bank’s semi-annual Financial Stability Report Wednesday in Wellington. Still, he warned that global uncertainty remains elevated and that New Zealand would be vulnerable if a sharp reversal in risk sentiment drove up borrowing costs for banks.

New Zealand home-owners have built up record amounts of debt in recent years as house prices soared, which may leave many stretched if borrowing costs were to rise quickly. Wheeler has cut his benchmark interest rate to a record low of 1.75 percent to spur weak general inflation, requiring him to introduce lending restrictions in an attempt to curb housing demand.

He said today that those restrictions have caused house-price growth to slow over the past eight months. However, “house prices remain elevated relative to incomes and rents, and any resurgence would be of concern,” Wheeler said.

A recovery in dairy prices over the past year had reduced risks faced by the dairy sector, though some parts of carry excessive debt and remain vulnerable, the RBNZ said.

New Zealand’s banking system “maintains strong capital and funding buffers, and profitability remains robust,” the central bank said. Still, banks had increased reliance on offshore funding for credit growth and remain exposed to a shift in global sentiment.

“A sharp reversal in risk sentiment could lead to higher funding costs for New Zealand banks and an increase in domestic borrowing costs,” the RBNZ said.

Emmanuel Macron’s win in the French Presidential election is good news for France and the Eurozone. Mr Macron appears to have secured around 66% of the vote to 34% for the National Front’s Marine Le Pen.

In electing a President whose party En Marche! is only a year old, the French electorate has rejected the political establishment. That said, voter turn-out was low suggesting a level of dissatisfaction with both candidates.

The good news is France has chosen a liberal reformist President who is second only to Angela Merkel in his support of the Euro-project. France has been, along with Italy, one of the Eurozone’s poor economic performers. Low growth, poor productivity and high unemployment are key features of France’s recent economic performance. A solid dose of structural reform is urgently required. France needs Mr Macron to deliver.

Key planks of Mr Macron’s policy platform include:

Greater Eurozone integration and co-operation on fiscal, social and environmental policies

Modest deregulation of the labour market, including giving companies the freedom to negotiate their own deals on pay and working hours, and

Pro-free-trade: in fact he was the only free-trade advocate in the presidential campaign.

Attention now turns to how much of his programme the new President is able to implement. Critical to this is whether En Marche! can win a parliamentary majority in next month’s National Assembly elections or whether some form of coalition will be required, most likely with the centre-right Republicans. Not only is this an opportunity for France to undertake much needed reform, it’s a massive opportunity for Europe to also push on with strengthening the framework of the currency union.

We began this year with concern about the upcoming elections in Europe and what that might mean for the stability of the Eurozone. So far we have seen wins for pro-Europe governments in the Netherlands and now France. German Bundestag elections come later this year in October, but both likely candidates for Chancellor, Angela Merkel and Martin Schulz, are staunchly pro-Europe. Italy remains a risk with an election next year. But in the meantime, it would be disappointing if Europe’s leadership were to squander the newly re-committed support for a unified Europe.

We have maintained our over-weight to developed market equities over the course of the year on the back of the improved growth and earnings outlook. With the French election now out of the way another source of potential risk is behind us and we expect growth assets to respond positively to this outcome.

This blog post has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.

Royle has just settled a mortgage for a couple in their 30s who had $104,000 worth of what he calls "crap debt" spent on holidays and consumer goods.

If banks are lending on the assumption it will be paid off with the KiwiSaver lump sum at age 65, the individual is back to square one of eking out a lot of retirement years on a very low income, which could get lower if governments of the day so desires.

The credit culture means that people are also reaching retirement with consumer debt ranging from HP to car and personal loans, which will have to be paid off somehow.

Anyone who thinks all this debt is essential should take fewer hallucinogenic drugs.

When putting a car or other more expensive spending such as home renovations on the mortgage, borrow that portion of the money over a shorter period, says David Boyle general manager investor education at the Commission for Financial Capability.

If, for example, you're borrowing $50,000 to buy consumer goods or refinance the debt off credit cards, pay that chunk off sooner. That's less harmful than paying it off over 20, 25 or 30 years.

Boyle points out that if he added $50,000 to his mortgage over five years, the total interest paid would be $7,655 at 5.8 per cent.

Borrowed over 10 years, the interest on the same $50,000 would be $15,948 and over 20 years, it's $34,675.

"That's around two-thirds of the original cost of the car," he says. "Crazy; not forgetting by that time the cars value is now $1000 if you are lucky.

Even better, try to become more aware of the long-term implications of what and how you're borrowing.

The final word goes to Lister, who says something refreshing, or even revolutionary for 21st-century New Zealand.

"Rather than using the lowest interest rates in 50 years to rack up more debt, people should think about upping their mortgage payments to smash that debt away while the interest costs are low. Better to make hay while the sun shines."

December inflation data is expected to show annual headline inflation back inside the Reserve Bank of New Zealand's (RBNZ's) 1-3% target band, the first time in it will have been inside the band since September 2014. Such an outcome will more than likely see the RBNZ confirm the easing cycle is over when it releases its next Monetary Policy Statement on February 9th. The big question for markets now is how long will it be before we see an interest rate increase? The best answer to that right now is "it depends".

We wish you a very Merry Christmas and trust you have a safe and happy time with friends and family over the festive season. Please be advised that over the Christmas break our office will be closed from the 22nd December & reopen on the 9th January.

Given the events of the week we thought it timely to provide you with some commentary and perspective on the US election result and closer to home the RBNZ’s announcement yesterday of another rate cut to a now record low for our Official Cash Rate of 1.75%.